Evaluation of the performance of High P/E Stocks Low P/E Stocks during recent revival of Indian Equity Market
Abstract
Returns from different trading rules have been an important part of the study of finance literature. Although the EMH(Efficient Market Hypothesis) neglects any unusual returns from trading strategies which are based on the past information related to stock prices and financials, many researchers have proved otherwise and shown abnormal returns by implementing simple trading rules. This is a comparative study of the returns of High P/E i.e Growth stocks and Low P/E i.e Value stocks during particular period. The main finding is that the returns of these different P/E stocks are significantly vary from the overall market returns, and the returns from Value stocks are better than Growth stocks.
Authors
Dhanjay Yadav